AUD/USD Forecast: Easing within range, not bearish yet

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7288

Upbeat Australian employment figures provided temporal support to the aussie.
A lockdown in Southern Australia has hurt demand for the commodity-linked currency.
AUD/USD lost the 0.7300 level, but the risk of another leg lower is limited.

The AUD/USD pair was under strong selling pressure at the beginning of the day, falling to 0.7254 on the back of risk aversion. It got to recover some ground during US trading hours, now trading around 07280, down for the day. The aussie enjoyed some short-lived demand following the release of upbeat Australian employment data. According to the official report, the country added 178.8K new jobs in October, much better than the -30K expected. The unemployment rate increased from 6.9% to 7%, below the expected 7.2%.

The announcement of lockdown in Southern Australia, however, weighed more. This Friday, the country will publish the preliminary estimate of October Retail Sales, seen up by 0.3% after falling 1.1% in the previous month.

AUD/USD short-term technical outlook

The AUD/USD pair is neutral-to-bearish in the near term. The 4-hour chart shows that the 20 SMA lacks directional strength, providing dynamic resistance around 0.7300. The larger moving averages keep advancing below the current level. Technical indicators are slowly recovering from daily lows, lacking momentum, and still below their midlines. Still, the pair would need to break below 0.7170 to become bearish.

Support levels: 0.7250 0.7210 0.7170

Resistance levels: 0.7300 0.7345 0.7380

View Live Chart for the AUD/USD

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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